A QUESTION OF RATES

Otago Daily Times, Issue 22366, 13 September 1934, Page 9

A QUESTION OF RATES

TOWN v. COUNTRY DISPUTE CUT COUNCIL AND POWER BOARD. #) (Pee United Press association.) WELLINGTON, September 12. • Town v. country, considerations enter into the dispute between the Palmerston North City Council and the ManawatuOrona Electric Power Board which came before the Chief Justice in the Supreme Court to-day. The City Council and the Mayor seek an injunction restraining the board from striking certain rates and also asked that the hoard be directed to rescind its decision to reduce the price of electricity for milking motors. The position as alleged by the plaintiffs is that the Manawatu-Oroua Electric Power Board drew up its estimates for a deficiency of £6700 which included £2OOO, being the estimated loss through reducing, the price of electricity for milking motors by T 1 per unit. In. order to make up. this, deficiency it was decided to strike a general rate over the whole of its area, which includes the city of Palmerston North, and a special rate over the city of PalmerstmvNorth alone.

Th City Council alleges that with the exception of the Kairanga County representative the country members on the board, , with a majority of eight,to four, display bias against the city. It is contended by the city that there- i* no need to reduce the price for milking motors.

The power board submits that the reduction in the milking motor .charges was made after careful consideration by the board and was deemed to be in the best interests of the! board. The levying of general and special rotes was the bona fide exercise of the powers of the board. Counsel’s submissions for the City Council were unfinished when the court rose,, and they will be continuedVto-mor-row morning. Evidence on behalf of the Power Board will probably al#o begin to-morrow. A large number of witnesses will be called.